The Parkmead Group has posted a s3.6million loss despite revenues increasing 58 per cent.

Income rose from s2.37 million to s3.7million mainly due to better sales at the Aupec subsidiary bought in 2009.

Parkmead, led by Dana Petroleum founder Tom Cross and with is main operations office in Aberdeen, said it is fully funded for future drilling opportunities, having secured an s8million flexible shareholder loan.

The firm also posted a cash balance as of June 30 of s1.3 million compared with s291,000 last year.

Cross joined Parkmead last year as executive chairman a year after losing a s1.7 billion hostile takeover battle with Korean National Oil Corporation (KNOC) for Dana.

He has since pulled together a core team of executives from Dana to run Parkmead.

Cross said: "The last year has been a period of strategic transformation for the Group.

"I am delighted to have become Parkmead's executive chairman and relish the opportunity to drive the business forward into an exciting new chapter of its development.

"2011 has been a successful year and I believe we are now well positioned with the essential skills and resources to build a significant new independent oil and gas company.

"I am pleased to report on Parkmead's improved operating capability for the year to 30 June 2011.

"The Groups Turnover and gross profit both increased substantially and net assets have also increased.

"We remain focused on the pursuit of value-adding acquisitions, at both asset and corporate levels, inline with the Groups strategy."

Parkmead completed its first acquisition in the North Sea earlier this month, buying a 15 per cent stake in the Platypus gas field and Possum gas prospect from ExxonMobil.

It lists total assets for the year to June 30, 2011 at s12.33 million, up from s11.34 million last year.

Parkmead announced in May it had entered into a strategic partnership with Aberdeen-based DEO Petroleum to pursue North Sea opportunities.

The joint venture, which will last until December 2013, will pursue opportunities in three specific North Sea locations.

Both companies have also agreed to go after acquisition opportunities together and bid for new licenses in the upcoming UK Continental Shelf 27th Licensing Round.

The Department of Energy and Climate Change is expected to confirm the licensing round next year.

Under the terms of the agreement, Parkmead will act as exploration operator during the application,bidding and exploration phases while DEO will assume the role of development operator.